J E Davis Pharmaceuticals Corporation which manufactures biotech drugs has been experiencing a tremendous growth in the price of its common stock. The stock price increased from $5.00 on January 1, 20X1 to $21.00 per share on December 31, 20X5. Its current net worth statement is as follows:
A) What changes would occur in the above statement of net worth after a 4 for 1 stock split?

Question

J E Davis Pharmaceuticals Corporation which manufactures biotech drugs has been experiencing a tremendous growth in the price of its common stock. The stock price increased from $5.00 on January 1, 20X1 to $21.00 per share on December 31, 20X5. Its current net worth statement is as follows:
  A) What changes would occur in the above statement of net worth after a 4 for 1 stock split?

Quizplus · Accepted Answer

The Answer of J E Davis Pharmaceuticals Corporation which manufactures biotech drugs has been experiencing a tremendous growth in the price of its common stock. The stock price increased from $5.00 on January 1, 20X1 to $21.00 per share on December 31, 20X5. Its current net worth statement is as follows:
  A) What changes would occur in the above statement of net worth after a 4 for 1 stock split?

J E Davis Pharmaceuticals Corporation Which Manufactures Biotech Drugs Has